Zinger Key Points
- Boeing plans to cut 17,000 jobs (10% of its workforce) as part of a cost-cutting restructuring effort, per a Reuters report.
- Boeing projects a 67% growth in the global air cargo fleet by 2043, driven by strong demand in Asia.
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Editor’s Note: The story has been updated to correct the typo in paragraph 6 that Boeing has lost 30% in the past year
Boeing BA shares are trading lower on Wednesday.
According to Reuters, the company reportedly begins issuing layoff notices to employees affected by a major restructuring plan.
The plan, which aims to reduce Boeing’s global workforce by 17,000 jobs—approximately 10% of its total—comes as the heavily indebted aerospace giant seeks to cut costs.
On Tuesday, Boeing stated that it projects an average annual increase of 4% in air cargo traffic through 2043.
In particular, it expects the global air cargo fleet to grow by 67% to 3,900 freighters by 2043, from 2,340 freighters in 2023, driven by strong demand in Asia.
According to Benzinga Pro, BA stock has lost over 30% in the past one year. Investors can gain exposure to the stock via First Trust Exchange-Traded Fund First Trust Indxx Aerospace & Defense ETF MISL.
Read More: Boeing Forecasts 67% Growth In Global Air Cargo Fleet By 2043, Driven By Asia Demand
Meanwhile, Boeing also said it successfully delivered the 7th and 8th O3b mPOWER satellites to SES. These advanced satellites, featuring Boeing’s cutting-edge software-defined communications technology, are now being shipped to Cape Canaveral for a planned December launch.
“We’ve worked closely with SES throughout this program and moved quickly to manufacture these latest satellites,” said Michelle Parker, Boeing’s VP of Space Mission Systems. “We’re excited to see them enter service and support SES users.”
The O3b mPOWER satellites use Boeing’s unique software-driven payload technology, offering flexible, high-efficiency connectivity. With over 5,000 steerable beams, the satellites can provide customized bandwidth and power to specific regions or customers. This enables reliable internet access anywhere—on land, at sea, or in the air—for applications like video streaming, remote work, and critical operations.
Boeing is continuing to produce, integrate, and test the remaining satellites and plans to deliver three more in the first half of 2025.
Price Action: BA shares are trading lower by 2.26% to $142.05 at last check Wednesday.
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